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Stock-based compensation | 12 Months Ended
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Dec. 31, 2018
Disclosure Text Block |
Stock-based Compensation | Note 36 - Stock-based compensation Incentive Plan In April 2004, the Corporation’s shareholders adopted the Popular, Inc. 2004 Omnibus Incentive Plan (the Incentive Plan”). The Incentive Plan permits the granting of incentive awards in the form of Annual Incentive Awards, Long-term Performance Unit Awards, Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Units or Performance Shares. Participants in the Incentive Plan are designated by the Compensation Committee of the Board of Directors (or its delegate as deter mined by the Board). Employees and directors of the Corporation and/or any of its subsidiaries are eligible to participate in the Incentive Plan. Under the Incentive Plan, the Corporation has issued restricted shares, which become vested based on the empl oyees’ continued service with Popular. Unless otherwise stated in an agreement, the compensation cost associated with the shares of restricted stock is determined based on a two-prong vesting schedule. The first part is vested ratably over five years comme ncing at the date of grant (the “graduated vesting portion”) and the second part is vested at termination of employment after attain ing 55 years of age and 10 years of service (the “retirement vesting portion”). The graduated vesting portion is accelerated at termination of employment after attaining 55 years of age and 10 years of service. The vesting schedule for restricted shares granted on or after 2014 was modified as follows, the first part is vested ratably over four years commencing at the date of t he grant (the “graduated vesting portion”) and the second part is vested at termination of employment after attain ing the earlier of 55 years of age and 10 years of service or 60 years of age and 5 years of service (the “retirement vesting portion”). The graduated vesting portion is accelerated at termination of employment after attaining the earlier of 55 years of age and 10 years of service or 60 years of age and 5 years of service. The performance share awards consist of the opportunity to receive shares of Popular, Inc.’s common stock provided that the Corporation achieves certain goals during a three-year performance cycle. The goals will be based on two metrics weighted equally: the Relative Total Shareholder Return (“TSR”) and the Absolute Earnings per Share (“EPS”) goals. The TSR metric is considered to be a market condition under ASC 718. For equity settled awards based on a market condition, the fair value is determined as of the grant date and is not subsequently revised based on actual performance. The EPS performance metric is considered to be a performance condition under ASC 718. The fair value is determined based on the probability of achieving the EPS goal as of each reporting period. The TSR and EPS metrics are equally weighted and work independently. The number of shares that will ultimately vest ranges from 50% to a 150% of target based on both market (TSR) and performance (EPS) conditions. The performance shares vest at the end of the three-year performance cycle. The vesting is accelerated at termination of employment after attaining the earlier of 55 years of age and 10 years of service or 60 years of age and 5 years of service. The following table summarizes the restricted stock and performance shar es activity under the Incentive Plan for members of management.
(Not in thousands) | Shares |  | Weighted-average grant date fair value
Non-vested at January 1, 2016 | 495,731 | $ | 28.25
Granted | 344,488 |  | 25.86
Performance Shares Quantity Adjustment | 39,566 |  | 24.37
Vested | (487,784) |  | 27.72
Forfeited | (8,019) |  | 29.13
Non-vested at December 31, 2016 | 383,982 | $ | 26.35
Granted | 212,200 |  | 42.57
Performance Shares Quantity Adjustment | (232,989) |  | 29.10
Vested | (67,853) |  | 48.54
Non-vested at December 31, 2017 | 295,340 | $ | 30.75
Granted | 239,062 |  | 45.81
Performance Shares Quantity Adjustment | 234,076 |  | 33.09
Vested | (372,271) |  | 35.83
Forfeited | (14,021) |  | 37.35
Non-vested at December 31, 2018 | 382,186 | $ | 36.41
During the year ended December 31, 2018, 166,648 shares of restricted stock (2017 - 138,516; 2016 - 279,890) were awarded to management under the Incentive Plan. During the year ended December 31, 2018, 72,414 performance shares (2017 - 73,684; 2016 - 64,598) were awarded to management under the incentive plan. During the year ended December 31, 2018, the Corporation recognized $ 6.9 million of restricted stock expense related to management incentive awards, with a tax benefit of $ 1.1 million (2017 - $ 5.6 million, with a tax benefit of $ 1.1 million; 2016 - $ 7.3 million, with a tax benefit of $ 1.4 million). During the year ended December 31, 2018, the fair market value of the restricted stock vested was $6.0 million at grant date and $8.0 million at vesting date. This triggers a windfall of $0.7 million that was recorded as a reduction on income tax expense. During the year ended December 31, 2018 the Corporation recognized $5.6 million of performance shares expense, with a tax benefit of $ 0.4 million (2017 - $1.2 million, with a tax benefit of $ 0.1 million; 2016 - $1.5 million, with a tax benefit of $0.1 million). T he total unrecognized compensation cost related to non-vested restricted stock awards to members of management at December 31, 2018 was $ 8.3 million and is expected to be recognized over a weighted-average period of 2.3 years. The following table summarizes the restricted stock activity under the Incentive Plan for members of the Board of Directors:
(Not in thousands) | Restricted stock |  | Weighted-average grant date fair value
Non-vested at January 1, 2016 | - |  | -
Granted | 40,517 | $ | 29.77
Vested | (40,517) |  | 29.77
Forfeited | - |  | -
Non-vested at December 31, 2016 | - |  | -
Granted | 25,771 | $ | 38.42
Vested | (25,771) |  | 38.42
Forfeited | - |  | -
Non-vested at December 31, 2017 | - |  | -
Granted | 25,159 | $ | 46.71
Vested | (25,159) |  | 46.71
Forfeited | - |  | -
Non-vested at December 31, 2018 | - |  | -
During the year ended December 31, 2018, the Corporation granted 25,159 shares of restricted stock to members of the Board of Directors of Popular, Inc., which became vested at grant date (2017 - 25,771; 2016 – 40,517). During this period, the Corporation recognized $1.6 million of restricted stock expense related to these restricted stock grants, with a tax benefit of $0.2 million (2017 - $1.3 million, with a tax benefit of $ 0.1 million; 2016 - $1.1 million, with a tax benefit of $0.1 million). The fair value at vesting date of the restricted stock vested during the year ended December 31, 2018 for directors was $ 1.2 million.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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